Bitcoin Drops to $60,000 Following Iran’s Missile Strike on Israel

2024-10-01 20:26:13

Iran Israel

Bitcoin fell over 3%, driven by heightened geopolitical tensions and investor sell-offs of riskier assets like cryptocurrencies. Last updated:

October 2, 2024 00:26 EDT

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 2, 2024 00:26 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Bitcoin dropped to around $60,000 Wednesday following Iran’s missile strikes on Israel. The strikes were in retaliation for Israel’s killing of militant leaders and its aggression in Lebanon against Hezbollah.

Concerns about a broader regional war involving Iran and the US have grown as Israel escalates its assault on Lebanon.

Bitcoin fell by 3.1% to around $61,616 on the day, and has dropped 4.4% over the past week. This decline is mainly due to growing uncertainty and increased risk aversion in financial markets, driven by geopolitical tensions.

As a result, investors tend to sell off riskier assets like cryptocurrencies, directly impacting Bitcoin’s price.

Bitcoin Reaches $60,000 Amidst Iranian Missile Strike on Israel

Bitcoin’s value plummeted to $60,000 on Tuesday afternoon following Iran’s missile attack on Israel, later recovering slightly to $61,500.

This represents a 7.5% decline from its recent $66,500 peak, causing…

— Imperial Wealth Crypto (@crypto_iw) October 2, 2024

White House Dispatches US Military Support to Israel as Tensions Escalate

Reports highlighted the severity of the situation as President Joe Biden and Vice President Kamala Harris gathered in the White House Situation Room. They reportedly deployed US military assets to reinforce Israel’s defense.

Reports indicate Iranian missiles were mostly intercepted with help from US naval destroyers. Still, “a few hits” occurred, according to Israeli military spokesman Daniel Hagari.

Crypto Markets React to Iran-Israel Tensions

Mitchell Nixon, chief research officer at Imperial Wealth, pointed out that the current Bitcoin decline mirrors past drops in April and July. Both were triggered by rising tensions in the Middle East, ing a sell-off in crypto assets.

On Sept. 30, 2024, Bitcoin spot ETFs saw net inflows of $61.2m, marking an 8-day positive streak. However, on Oct. 1, the trend reversed with a substantial outflow of $242.5m, data from SoSoValue showed.

In contrast, Ethereum spot ETFs ended Sept. 30 with an outflow of $822,300. This outflow worsened on Oct. 1, surging to $48.52m.

“Beyond geopolitical concerns, traders were also securing profits ahead of the upcoming Federal Open Market Committee meeting,” he wrote in a Wednesday note.

“Data from CoinGlass indicates substantial outflows from major cryptocurrencies including Bitcoin, Ethereum, and Solana, with sellers outnumbering buyers in the current market climate.”

Despite the ongoing tensions, Nixon highlighted that Bitcoin has marked its strongest September close in over a decade, since before 2013.

BTC0,61%

OVER-2,96%

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